QROPS Australia
Over 23,000 UK citizens moved permanently abroad to Australia last year which represents over 15% of the total number of people moving to Australia per annum. Some Britons wait until they retire before moving abroad with the expectation of not having to worry about earning a living and relying instead on their pension to provide a regular income. If this is indeed the case and you have contributed to a pension scheme during your working life then you will want to get the most from it that can be taken. If you have already moved to Australia or are planning to do so, you should seriously consider your pension transfer options and in particular transferring your UK pension into a QROPS as there are a multitude of benefits to be gained by doing so.
One of the major benefits of transferring your UK pension into a QROPS in Australia is that upon death or disability, you are entitled to pass your pension fund onto your nominated beneficiaries either as a lump sum or pension whilst avoiding inheritance tax.
By leaving your pension fund in the UK, Australia will apply tax to your pension in retirement and possibly also the annual growth of your pension fund before retirement at your marginal rate of tax. Pensions which are paid to your spouse and dependant children will also be at a reduced rate. However, if you transfer your UK pension fund to a QROPS in Australia you may receive a tax free pension in retirement
A UK pension can be transferred to a QROPS in Australia although there are restrictions on some of the schemes and the amounts you can transfer to an Australian QROPS. As from 1st July 2007 this can include a maximum transfer of $150,000 per annum or $450,000 over a three year period.
contact a QROPS adviser for further information on QROPS transfers.
